this is "nighlty business report" with tyler mathisen and sue herera. global pain. the worldwide selloff started in china, spread to europe and battered stocks here in the u.s. sending the dow jones industrial average lower but nearly 300 points. earnings on deck. attention now turns to next week and what the flood of profit reports could mean for the market and your money. flagship fund. the man who runs the world's biggest bond fund is outperforming his peers and shares his thoughts on the economy, fixed income and the fed. all of that and more tonight on "nighlty business report" for friday april 17th. good evening, everyone. i'm sue herera. tyler mathisen is off tonight. stocks got slammed. the major average is spiralled slower.

and the dow jones plunging nearly 280 points. the biggest one day drop across the globe. it started in china with a regulatory move and spread to europe on a new round of greek worries and found its way to the u.s. by the close the dow jones industrial average sank to 17,826 and the s&p 500 gave back 24 and it was a losing week for all of the averages. bob sonny looks at the issues settling the market. >> a crackdown by the chinese and a greek exit from the euro put pressure on stocks today. it was a selloff on heavier than normal volume. all of the major indices were down as well as all of the s&p 500. and the stocks in the internet

and the solar space were down more. everything down 2% to 3% and the biggest moves in greece russia italy and portugal. everything is up double-digits as the european bank has sought to prop up the economy. t of the profit is locked up. a lot of the traders decided to lighten up. after the close in china, there was a crackdown in over-the-counter stocks. this is an issue because investors are pouring money into small cap stocks for a good part of the year. the news was not reflected in the market there right now and the shanghai index was up 2.2%. but china e chips traded lower by 5%. and traders were looking forward a big week of earnings and roughly are roughly in line and revenue is continuing to come in on the light side. for "nighlty business report" i'm bob fis anie at the new york

stock exchange. our market monitor talks about the selloff and talk about next week. michael caddeneo from the permanent portfolio family funds with $5 billion under management. good to see you. >> you as well sue. >> tell us what happ you think a couple of key data points had something to do with it? >> well sure. i think the one thing, obviously the things that you and bob mentioned are accurate but the inflation data coming in today was getting awfully close or exceeding the feds target of 2%. and i think you get back to the very big concerns in the u.s. about the closer the fed gets to the inflation target and the employment targets the more likely they'll start raising interest rates so whether you consider food energy or not and you are getting around it or exceeding it and the pressure on the fed to act more quickly than

normal is there. >> are you one that believes the fed will act in the second half of the year or any time this year or not? >> well certainly they could. although i wouldn't be surprised if they do nothing. the u.s. economy is showing some weakness. we are still trying to figure out if there is sustainable there. and they are being hurt by weakening global economic growth and that is giving more wiggle room to delay. and on the other hand a return to normalized interest rates is a thing to return a long time ago. but i'm in the camp that is something they should have done something a long time ago. but the economy isn't good enough to with stand a quick move and an increase to the defi if you start increasing interest rate costs. and it is depending on how quickly they move and how the economy can sustain. >> we saw volatility about earning and i want to get to

your picks because they are reporting next week. you like facebook at this point. why? >> it is a classic early stage growth story. they have a intangible asset of information and they are discovering new and better ways to monetize that information. they'll continue to do that. we've seen it grow into multiple stock. and revenue and cash growth is there and we like it in the long-term. >> and you also like janis. >> yeah. financial services asset management. a business we know well. there is operating leverage. the funds are performing better. whether the gross addition -- bill gross addition succeeds in the long-term or not, they are still doing margins are improving and fund performance is better so we expect the stock to continue to outperform. >> and a play on commodities in macmaran and freeport and copper. >> an area not well liked but it

is tremendously outperforms and demand will outsupply dividend and they are in energy and copper and we think that is commodities that th world will need and that is ride the storm if you have a strong stomach. >> mike have a good weekend. thank you for joining us. mike with the permanent portfolio family of funds. general electric reported better than expected profits in the face of a strong dollar and weak oil prices and the results come one week after unveiling the plans to dramatically shrink the finance business. shares of ge started higher but ended slightly lower. mary thompson has more. >> while general electric first quarter profits declined they kept a tight reign on expenses.

>> they have a good first quarter growth. we've seen the quarter we planned for. >> the stronger dollar trimmed a billion dollars from the company's revenue. while expense controls and strong performances by businesses making jet engines and locomotives fueled earnings that including general electric capital beat estimates by a penny. >> you saw operating margins expand because they are on a billion dollar a year simplification program. >> and that is one year the gec industrial profits tracking at the high end for guidance for this year along with the above trend operates in the aviation business. despite profits in the oil and gas business once a growth driver, will decline as much as 5% this year. and so ge is cutting the unit expenses by $600 million.

the first quarter results is their ability to drive initiatives in industrial businesses which it said will generate 98% of the profits by 2018 all part of the strategy by selling billions in assets over the next two years. >> and also the latest makeover by imelt, by creating an easier story for him to sell that of a high growth industrial firm. >> the change you are seeing in the cost every quarter these are indicative of a company that is transforming and very different today than it has been over the last 15 years. >> and with stock down over the last 15 years and they hope that generates a different return. for "nighlty business report," i'm mary thompson. >> and now to earning from honeywell. they reported a 5% drop in quarterly revenue because of that strong dollar.

the company also cut its full year revenue outlook but raised the lower end of the annual profit forecast as market share gains are projected to offset declining revenue. the stock dropped more than 2% in the trading session. and on to the economy which saw consumer prices tick higher. the consumer price index which measures what americans pay for just about everything increased for the second straight month by .2% in march but compared with a year earlier, crude proiss climbs 1.8%. and the yield of the treasury bond on tenure is solidly below 2%. our next guest runs the biggest bond fund and he's to share about the fund and the fed. he's scott mather the chief investment officer for pimco. good to see you scott, welcome back. >> good to see you, sue.

thank you for having me. >> you are outpacing your peers by better than 90% and you've turned that fund around. how did you do it? >> well i'd like to tell you it is all myself but it is really not. we have a process here that is a large team of people involved in designing the strategies and the individual securities that we're excellenting for the fund -- excellenting for the fund. so we have 260 portfolio managers and they are part of the strategy-making process. so it is using the same people and the same processes that have allowed us to outperform over numerous market cycles for deck ates. so we are returning the fund back to where we spend most of the time at the top of the league taes. >> indeed. where did you find the best trades and the best value in the market. because you've basically been looking around the globe as webe as in the treasury market. so where did you find the most opportunity? >> well there is a few important

themes. one, we've been very focused on monetary policy divergence. and there are many different strategies in the portfolio to take advantage of that. we do believe the federal reserve will move interest rates in the summertimes even while other central banks are actively easing monetary policy. so we have a number of strategies to take advantage of that and prepare for that. some of the things that have worked well focus on european bonds which have been outperforming u.s. bonds. our focus on looking for other areas in the world where monetary policy and rates won't be tied to the u.s. rate cycle. places like mexico for instance for local rates. and of course there are many other -- one of the follow-on themes from this i continued dollar strength and that has implications for the currency which has worked out well for us but for the individual sectors we're investigatin -- investing

in in the corporate mark. >> what about greece? that is rolling the equity side of the market and sending money into fixed income in the u.s. yield curve and also in germany as well. there is a lot of talk that we may see negative rates in germany. how big of a factor is greece at this point? >> well it is an important factor and today it was one of the main things driving markets across the world. greece is certainly not a very significant portion of the global economy. not even a very significant portion of the european economy. but it is very important. there are all sorts of unknowns about what happens if the country does go down the path of exiting the monetary union. and our best case expectation is that greece finds a way to stay in the monetary union and muddle through this. but with each day that passes it is certainly getting worse and worse for the greek economy and it means they are getting deeper and deeper into recession

territory and need more money from the eurozone. and the outcome for greece is rising and that will have implications for the economy through channels and through confidence channels. >> you mentioned your forecast for the fed. we saw the inflation figures come in this morning and that kind of upset the equity side of things what about inflation linked bonds, is that part of your portfolio that you've been employing or not? >> absolutely. the bonds started the year very cheap and we've had positions to emphasize owning inflation link bonds over treasuries. and they are beginning to pay off and contributing to performance of the fund. we think there is more room to go though. the market was very preoccupied as we started the year. about disinflation and the ability of a drop in energy prices to somehow filter in in a

lasting way. the market was pricing that the fed would fail for the policy octive -- objective for ten years or longer. we think the bonds have bounced, they have a lot further to run as it becomes clear that inflation is headed up because wages are headed up and because the big drop in energy prices is moving up and passing inflation. >> scott, we'll leave it there. continued success. thank you so much for joining us. scott mather with pimco. still ahead, a major cable tv provider just made a big move that could further shake up the television industry.

president obama defended his pursuit of the sweeping trade pack we told you about last night. the president said the deal with 11 other pacific nations is good for american workers in a global economy. dismissing opposition from his own party. >> what we are doing is negotiating the highest level, highest standard trade agreement in our history, with strong enforceable labor provisions strong enforceable environmental provisions and i will be able to show when the final agreement is presented, that this is absolutely good for not just american businesses but for american workers. >> but those opposed to the trans-pacific partnership say it will cost american jobs since global trade will make some positions obsolete and possibly damage the environment. attorneys at the department of justice may be close to opposing comcast's $45 billion

proposed acquisition of time warner cable. according to a repor by bloomberg, lawyers in the abt trust division are nearing a recommendation to block the deal because of concerns consumers could be harmed. it would be submitted next week. shares of time warner fell more than 5% and kmart, the parent cherry blossoms of krvp nbc dropped 2%. and now to another company that changes the way people watch tv. verizon is rolling out a new pay plan that is a big departure from cable bundling. julia looks at how this disrupting this could be to an industry already under going enormous change. >> verizon wants to give consumers a new way to pay for tv. fios will allow consumers to choose every month which channels they want to see. >> i think about millennials and how they are viewing videos today for example. the plans that we're launching,

custom tv gives the customers customizable content they can have the base and local, which is popular and choose through genres that are specific to their taste. >> the packages start at $65 a month for brand band and 36 basic channels and a choice of two of seven channel packs, including sports and kids programming. additional channel packs will cost $10. what makes the new offering unique is the ability to swap out options every 30 days instead of locking consumers into long-term contracts. the move to address consumer demand for a la carte options. >> increasing customers want to pay for what they use and we're not all the way there today in terms of a la carte but we believe it is our opportunity when we sit with the content partners to represent what we hear from customers. >> but with so many a la carte options out there like netflix, hulu plus and now hbo now some

say this isn't enough to prevent consumers from cutting the cord with bundles from tv cable and satellite companies. >> the tv compa have still not gone far enough and when you look at the trends with cable cutters, it is still low and i think given the latest moves with hbo and other networks you'll see that happen much much quicker, but in but in meantime this questions whether fios will make gains on comcast and time warner cable. for "nighlty business report," i'm julia boor sten in los angeles. a major merger. according to reports from dow jones. peja is exploring a takeover from milen. creating a huge drug player. milea responded to that report saying it is fully committed to the stand alone strategy and to

the proposal it made this month to buy para go for $30 million. milen topped 4.5% to $69.82 and milen rose to $64.91. and shares of sea gate popped. the data storage company blamed poor economic divisions. it still man ablged to top the economic division and closed at $57.43. reynolds american reported a beat on the top and bottom line. the cigarettemaker saw declining shares and a declining market solutions share. shares were up a fraction to $74.70. proctor and gamble is hiking the dividend to 66 cents a share payable to shareholders in mid-may. the yield on the company payout is about 3%. despite that shares fell 1% to $82.53. the departmen of transportation wants to improve

the safety of oil being transported by train. in a letter to the rail industry the agency said train operators must have detailed information about the po risks and perform more thorough checks before moving on the tracks. a expensive dush a comprehensive plan is coming in weeks. and the obama administration is proposing rules that could raise the fees to drill on federal land. it could give the government more flexibility to set the fees. a low royalty rate encouraging exploration and any fees could raise concerns from the industry and potentially lessen production. shlumber jay could report a sharp drop in profits and announce to cut thousands of workers. it reflects a broad slow down in drilling for oil and gas. and as morgan brennan shows us any recovery will look starkly

different from the ones that come before. >> the results represented at almost 40% plunge in profit from a year ago. but as oil prices have slacked since last summer that is still less than analyst feared. >> the earnings beat was attributable to proactive cutting of costs in the face of a major downturn in north american drilling and in the international arena as well. >> part of the cost cutting, more layoffs, an additional 11,000 and bringing the total number up to 20,000 or 15% of the global work force. the energy giant offered a cautious outlook, particularly for north koreaamerica. paul gis guard said they believe recovering u.s. land drilling will quote, be pushed out in time as inventory of uncompleted wells drilled and fracking expands. and why they have plunged by 50% since the fall and eog and ante

darko and apache have drilled thousands of future wells before idling them. but with crude prices so low they have held off before fracking them that releases the oil and gas from the earth. it is the growing backlog of uncompleted wells that could slow the pef oil recovery. >> we are close to a bottom. as we start to see a recovery, it will be gradual. and there is an inventory of drilled but uncompleted wells that are the first priority for the oil companies. >> for that reason said shoemaker, it isn't until next year tha for drilling rigs begins to pick up in a meaningful way. for "nighlty business report," i'm morgon brennan. and still ahead, the very big business of boxing and the money behind the match-up being called the fight of the century.

here is what to watch for next week dow's dupont and coca-cola will report and the biggest names in tech will release earnings including, yahoo, facebook and google. and plenty of information on home sales on the agenda for next week. bloomberg financial terminals went down around the world paralyzing investors. the blackout which started out after the european opening caused a debt buyback. it is a market software used by market participants it was restored a couple of hours after

opening on dow. less than three weeks away, no matter who wins the may weatherer and the manny pacquiao fight, the numbers are eye-popping. >> in the biggest prize money match ever it is the fighter who chews on dollars against the one known for pounds. the manny pacquiao flied may weather fight could bring in $300 million, maybe half a billion if pay-per-view bring in expectations. the fight for the century is years in the making with may weather the undefeated favorite needed convincing the only reason this fight happened is because you were willing to take less than half. >> yes. 60/40 and agreeing to what he wants. >> even at 40% pacquiao will make $80 million but win or lose may weather gets a

guaranteed $120 million which could higherer setting a record for an annual athlete's pay day in no more than 36 minutes of work. >> it is a little bit about the money. it is about the fans. a little bit of everything wrapped in one. >> tickets on the secondary market are selling for as much as 65,000 dollars. even though last-minute haggling has prevented tickets from going on sale. but could haggling prevent the fight? >> in the documents, we have all agreed that if there is a t dispute les mon ves, the chairman of cbs, i kid you not, it is right in the document is the arbitrator to settle all legal disputes. >> both sides are sparring verbally even when talking potential rematch. >> it all depends on whether he knocks him out and so forth. >> and behind the scenes more continues. and they have mouth guards of gold or stuffed with $100 bills

and so high-tech he breathes better with the guard in rather than out. >> we charged roughly 25,000 dollars and maybe a touch more. >> and for all of the talk this is about history rather than money. >> our focus isn't about the money. the money will come. >> assuming nothing stops the fight from happening, everyone will go home rich. >> how much money do you make on this fight? >> what? >> for "nighlty business report," jane wells. >> that is "nighlty business report i'm sue herera. have a great weekend, everyone. and we'll see you monday.

gloria:congress inserts itself into the iran deal. a question of legacy and new relations with cuba. the president gets passionate over his attorney general pick. and expected players jump in to widen the field for campaign 2016. i'm gloria borger sitting in for gwen ifill tonight on "washington week". >> conditioning -- congress absolutely should have the opportunity to review this deal. we shouldn't count on the administration who appears to want a deal at any cost. gloria: capitol hill flexes its muscle on iran saying any nuclear deal must have congressional review and the president goes along grudgingly. president obama: you'll have ample opportunity to review it and opine on it but right now we're still negotia